The chairman of Amnesty International’s UK Business Group considers how oil companies must change their attitudes in a world which is changing faster. “Silence or inaction will be seen to provide comfort to oppression and may be adjudged complicity.” Sir Geoffrey Chandler CBE is a former senior executive of the Royal/Dutch Shell Group and architect of Shell’s first Statement of General Business Principles. This article is reprinted with permission from Oxford Energy Forum, November 1, 1997.

Sustainable development is often framed as a social issue to which corporations should pay attention because it offers both opportunities and challenges. Through the use of institutional theory and the resource-based view of the firm, we shed some light on why, more than 20 years after sustainable development was first introduced, we see neither the adoption of this business model as dominant nor its converse, that is the total abandonment of the model as unworkable and unprofitable. We focus on multinational (...) corporations (MNCs) because they were among the organizations first called to take action. In order to illustrate the institutional pressures MNCs face and their strategic response to these pressures, we analysed four major oil and gas multinationals subject to similar sustainable development pressures – climate change, biodiversity, renewable energy development and social investment. We argue that normative and coercive isomorphism does not occur at the global level because sustainable development is largely a stakeholder-driven rather than a broad social pressure. That is, host country interpretation of sustainable development pressures varies across an MNC’s subsidiary network. Based on the analysis of the four major MNCs’ annual reports from 2000 to 2005, we argue that mimetic isomorphism may occur, but since it implies the use of complex and intangible resources, mimetic processes are slow, rare and discretionary. (shrink)

Being a controversial industry, oil companies turn to corporate social responsibility (CSR) as a means to obtain legitimacy. Adopting a case study methodology, this research examines the characteristics of CSR strategies and CSR communication tactics of six oil companies by analyzing their 2011–2012 web site content. We found that all six companies engaged in CSR activities addressing the needs of various stakeholders and had cross-sector partnerships. CSR information on these companies’ web sites was easily accessible, often (...) involving the use of multimedia technologies and sometimes social media platforms. Furthermore, to boost the credibility of their CSR messages, these companies utilized a variety of tactics, such as factual arguments and two-sided messages. In sum, this research unveils the interconnectedness among business strategy, CSR practices, and CSR communication in oil companies’ attempt to gain legitimacy in an environment of controversy. The article ends with a discussion of the theoretical and practical implications of the research findings. (shrink)

Following Darcy’s concession in 1901, Britain began oil exploration in the southwest of Iran. In 1908, economic oil was discovered, and the Anglo- Persian Oil Company (APOC) was established. This company from its establishment was under the influence of the British Government, to extend that, Britain became its major shareholder in 1917 which continued until the nationalization of Iran’s oil in 1951. In the meantime, the concession and following agreements prepared an almost autonomous status for the company. Generally, Iran had (...) never been a British colony, however; this status had evidence of colonialism and let the company build the artificial environment in Iran’s southwestern, based on its attitudes and values, as well as hierarchical structure, racial-class segregation, and closed society, which experts consider it as a type of social engineering. According to this, the building formed by the company could manifest the upstream ideas, specifically in towns that were completely shaped by it. Therefore, Masjed Soleyman and Abadan, the two main company towns of the British-owned Anglo-Persian Oil Company, which were quite isolated from other parts of Iran, could be suitable platforms for displaying the company’s attitudes and values. Therefore, this research by interpretive-historical methodology, based on both primary and secondary sources from desk research and archival research, investigates the manifestation of the company’s attitudes and values in its quiet a half-century (1901-1951) building in Masjed Soleyman and Abadan, in five periods. These periods were shaped based on the most important happens including periods of exploration (1901-1908), formation (1908-1917), primary development (1917-1933), secondary development (1933-1939), and leading to the nationalization of oil (1939- 1951). In the first period, there is no evidence of architecture or urbanism, in the second and third periods, architecture, specifically bungalows appeared company values and in the fourth and fifth periods, urbanism especially, garden cities represented company values. (shrink)

Protecting the environment and its natural resources is an issue of great importance at the local and global levels. The phenomenon of environmental pollution resulting from the work of oil companies is one of the dangerous phenomena facing the environment in Iraq in general, and the environment of Kirkuk Governorate in particular, as the latter is considered one of the governorates rich in mineral resources, especially oil, as it contains six oil fields, and it contains the largest oil field (...) in Iraq. Estimates indicate that it produces (40%) of the total Iraqi oil, so it suffers from a significant increase in the proportions of toxic and environmentally polluting gases resulting from the work of these companies in it. The work of oil companies from exploration, extraction and refining oil will naturally result in the emission of many gases that are highly toxic, dangerous and harmful to human health. The most important of these gases are carbon monoxide, sulfur dioxide, nitrogen dioxide, hydrocarbon compounds, hydrogen sulfide and other gases that pollute the environment, which has resulted in the spread and increase in the number of patients with respiratory diseases in a clear and increasing manner in the governorate. This increase in environmental costs falls on society as a whole, so it was necessary to identify and measure environmental costs from the society’s point of view and work to re-charge them to oil companies by applying the environmental tax. (shrink)

In this paper, we examine how organizations’ impression management evolves in response to rising stakeholder pressures regarding organizations’ corporate responsibility initiatives. We conducted a comparative case study analysis over a period of 13 years for two organizations—Exxon and BP—that took extreme initial stances on climate change. We found that as stakeholder pressures rose, their IM tactics unfolded in four phases: advocating the initial stance, sensegiving to clarify the initial stance, image repairing, and adjusting the stance. Taken together, our analysis of (...) IM over these four phases provides three key insights about the evolution of IM in the face of rising pressures. First, when faced with stakeholder pressures, it seems that organizations do not immediately resort to conforming but tend to give in gradually when pressures increase and start to come from relatively powerful stakeholders. Second, evolution of IM seems to be characterized by path dependence, i.e., even as organizations’ positions evolve, they continue to show their conviction in their initial positions and try to convey that their subsequent positions flow logically from the previous ones. Finally, IM involves navigation between symbolism and substance, and companies tend to strive toward harmonizing their symbolic and substantive actions as stakeholder pressure increases. (shrink)

In this paper, we examine how organizations’ impression management evolves in response to rising stakeholder pressures regarding organizations’ corporate responsibility initiatives. We conducted a comparative case study analysis over a period of 13 years for two organizations—Exxon and BP—that took extreme initial stances on climate change. We found that as stakeholder pressures rose, their IM tactics unfolded in four phases: advocating the initial stance, sensegiving to clarify the initial stance, image repairing, and adjusting the stance. Taken together, our analysis of (...) IM over these four phases provides three key insights about the evolution of IM in the face of rising pressures. First, when faced with stakeholder pressures, it seems that organizations do not immediately resort to conforming but tend to give in gradually when pressures increase and start to come from relatively powerful stakeholders. Second, evolution of IM seems to be characterized by path dependence, i.e., even as organizations’ positions evolve, they continue to show their conviction in their initial positions and try to convey that their subsequent positions flow logically from the previous ones. Finally, IM involves navigation between symbolism and substance, and companies tend to strive toward harmonizing their symbolic and substantive actions as stakeholder pressure increases. (shrink)

The oil industry has played a major role in the economy of modern Iran and Malaysia, especially as a source of transnational exchange and as a major factor in industrial and urban development. During the previous century, the arrival of oil companies in the Persian Gulf, brought many changes to the physical built environment and accelerated the urbanization process in the port cities. Similarly, the development of the national oil industry had a huge impact on post-independence Malaysia, affecting balance (...) sheets, the environment, and society. Oil significantly changed Malaysia’s position in the global economy and transformed a predominantly agricultural country into a major producer of petroleum and natural gas. Through implementing the analytical, historical and comparative perspectives, this paper focuses on the legacy of oil cities in the Persian Gulf and the South China Sea as the birthplaces of the oil industry in two regions, whose geopolitical importance along with oil’s historical significance has the potential for representing national unity, political memory and collective shared identity. In proposing this grounding, the paper seeks to approach the heritage of oil as a particular form of industrial heritage. This research analyses the future of energy heritage, existing Covid-related challenges, political tensions and examines the various impacts, transitions and capacities associated with the current international relations, post-pandemic urban developments, and the post-oil future to pave the way to these nascent areas of industrial heritage and oil heritage in Iran and Malaysia. (shrink)

Interest shown on the environmental impact of operations of multinational enterprises in developing countries has grown significantly recently, and has fuelled a heated public policy debate. In particular, there has been interest in the environmental degradation of host communities and nations resulting from the operations of multinational oil companies in developing countries. This article examines the issue of environmental costs and responsibilities resulting from oil exploitation and production in the Niger Delta region of Nigeria. The case study is based, (...) in part, upon series of interviews with key stakeholders in the Nigerian oil industry. The article further examines the implications of the current practice and policies of multinational oil companies with respect to environmental impact of oil exploitation. The study’s findings illustrates that it is becoming increasingly apparent to oil companies that pollution prevention pays while pollution does not and under pressure from stakeholder groups, oil companies now routinely incorporate environmental impact assessments into their corporate strategy. (shrink)

Corporate reporting on climate change is of increasing academic interest but is often considered solely from the firm perspective. This article extends current knowledge by considering how institutional pressures influence the greenhouse gas reporting practices of multinational oil and gas companies. The results show that regulation under the EU emissions trading scheme and reporting according to the global reporting initiative guidelines leads to better quality and more extensive reporting. Although generally adopting proactive climate change strategies, European companies do (...) not have superior GHG reporting practices. Corporate media visibility does not impact GHG reporting practices which may be a reflection of the obscure portrayal of climate change in the print media or the fact that coverage is generally positive. This article adds to the current literature on GHG reporting practices demonstrating that institutional theory along with stakeholder theory and legitimacy theory can give further insights into explaining the GHG reporting practices of multinational companies. (shrink)

The purpose of the study is to research intermediary transactions in the oil and gas producing industries and present them based on the results of the internal audit. In accordance with this goal, the article discusses and analyzes the theoretical aspects of accounting and methods of conducting an internal audit of settlements for intermediary transactions in oil companies. Attention is focused on the fact that intermediary operations are important in regulating the mechanism of market relations of both manufacturing (...) class='Hi'>companies and purchasing companies. The article analyzes the current methodological guidelines of oil companies on the accounting of intermediary operations and the rules for conducting internal audits. As a result, shortcomings in the accounting of intermediary operations were identified and methodological recommendations for their improvement were presented, confirming the scientific novelty of the study. (shrink)

The recovery after the unprecedented pandemic crisis that Europe has currently been facing is strengthening the strong dependence between social, economic, and environmental fields, maintaining green investments and innovation at the core of the European strategies. Shifting to clean industries is a challenging mission that a complex network of stakeholders and their different interests must take into account. Within this network, the interplay between environmental and financial performance of a company represents a common point with a growing emphasis on the (...) transparency and the materiality capacity of the disclosed information. This paper uses the Structural Equation Modeling and the Gaussian Graphical Models as graphical analysis approaches and offers a first insight about the interaction between environmental materiality measures and financial performance. A preliminary step of the scientific research consisted of a hand-mapping investigation about materiality conditions. Starting from the Materiality Map developed by the Sustainability Accounting Standards Board, this paper extends the main concept about materiality and investigates it on three different content ranges, which focus on the general environmental policy of the company, the targets set, and its concrete footprint. The methodology approaches were grounded on a newly compiled dataset provided by the Thomson Reuters database for 194 Economic European Area oil and gas companies. The results provide significant evidences for the manifestation of materiality and emphasize the informational content of the individual environmental measures as an important condition for its financial impact. Adding to the environmental-financial performance relationship, our findings have both practical and academic relevance for the economic field and sustainable growth goals. (shrink)

The importance of the marketing function at board level is often underestimated and its role in driving change in HR is often undervalued. This research examines how marketing can partner with organizational leadership for a mutually beneficial exchange of marketing skills and capabilities to be able to realign human resources quickly enough to deal with shifts in the external business environment and create a sustainable future for the business. The current research explores the concept of “marketing leadership” from an interpretive (...) perspective that challenges the traditional view of marketing and leadership as two separate domains and offers a comprehensive approach to human resource management. The descriptive survey method was used for this research, and the research population was the oil marketing company. The current research assumed that marketing leadership affects human resources management. The research concluded that marketing leadership greatly affects human resources management and its dimensions, with an average effect of (0.52). This indicates a high and significant impact of marketing leadership on human resources management. (shrink)

This study explores the sustainability transition in Iran's oil towns, emphasizing Masjed Soleyman’s evolution. Stemming from the Industrial Revolution, the search for new energy led to the early 20th century D'Arcy Concession, catalyzing oil exploration in Iran. This resulted in the pivotal discovery of oil in Masjed Soleyman in 1908, transforming an uninhabited area into a thriving town intricately linked to the Anglo-Persian Oil Company (APOC). This research critically analyzes the unsustainable nature of oil exploration, particularly highlighting APOC's colonial practices, (...) like racial segregation between European and Iranian staff. Despite these challenges, the study identifies pathways for sustainable development, emphasizing the role of Masjed Soleyman's oil heritage. It advocates for the adaptive reuse of historical buildings for diverse community functions, thereby promoting sustainability and cultural preservation. This approach not only safeguards the town's rich historical and cultural fabric but also marks a significant stride towards sustainable urban development in oil-dependent towns. (shrink)

Organisational psychological defences protect the self-esteem and moral integrity of the organisational personality even at the expense of sacrificing the morality of actions. This paper analyses the spectrum of defences used by an oil refinery and its parent company during an oil spill incident. A hypothetical model of defences built on Swajkowski’s four responses to accusations of organisational misconduct – refusals, excuses, justifications and concessions – is tested through this case. On the basis of empirical findings it is obvious that (...) defences delay, impede and interrupt the mitigation and recovery actions of incidents. It is not possible to break the defence behaviour of individuals because it is a built-in psychological mechanism in all humans serving a valuable purpose of dosing the pain of injury. However, it is possible to separate individual and organisational behaviour so that automatic organisational procedures mitigate, recover and, ultimately, prevent incidents. The organisational psychological task of crisis management is to mitigate the organisation’s ego defences, recover from its emotional turmoil and prevent further traumas by making its ego stronger and more flexible. The argument of this paper is that in practice organisational defences act as bumpers against becoming too conscious of the gap between the corporate rhetoric and reality, as subconscious breaks against too fast change demands, and as batteries in their preconscious effort to prepare for the change. Organisational refusals act as bumpers, excuses as breaks and justifications as batteries, while concessions imply that a change towards a more responsible corporation is taking place. (shrink)

Negotiations are under way for Exxon Mobil, Shell, Total and BP — the original partners decades ago in the Iraq Petroleum Company, now joined by Chevron and other smaller oil companies — to renew the oil concession they lost to nationalisation during the years when the oil producers took over their own resources. The no-bid contracts, apparently written by the oil corporations with the help of U.S. officials, prevailed over offers from more than 40 other companies, including (...) class='Hi'>companies in China, India and Russia. (shrink)

During the rapid process of deindustrialization in Iran, the term ‘industrial heritage’ has recently emerged as a new subject into public realm. In order to integrate the methodologies for the protection and adaptive reuse strategies, the ‘industrial heritage’ itself needs to be divided into various categories. UNESCO has begun inscribing increasing numbers of local industrial legacies such as railway, mines, factories, assembly plants, agricultural production and manufacturing production in its World Heritage List. However, in the process of their adaptive reuse (...) the question of heritage meanings arises. Over the past century in Iran, powerful corporate and governmental actors have created a broad range of oil imaginaries that changed over time and in line with local cultures. Starting from 1920s and after the nationalization of oil industry in Iran, oil cities such as Abadan and Masjid Suleiman saw massive expansion to house labors and oil-industry specialists who had arrived from the United States, Europe, India, and the Persian Gulf states. This research aims to clarify how the oil industry, in close collaboration with national governments, has materially shaped the oil cities through oil-specific architecture like company headquarters, gas stations, retail and infrastructure buildings. The current legacy of oil industry continues to reshape the industry, society and politics as well. This research uses a critical and analytical problem-based approach to examine the current policies that build a new image and identity through adaptive reuse strategies to promote sustainable local development in Iran’s industrial heritage. (shrink)

This paper argues how boards of directors of three Icelandic oil companies were kept in the dark while the companies were collaborating in illegal competitive behaviour. The paper offers a unique view into a situation where information or lack thereof has played a key part in corporate governance, exploring the relationship between management and the board of directors and how information filtering can go wrong to the extent that vital information does not reach the board. The paper is (...) based on a case study of the illegal collaboration of the oil companies. It furthermore surveys the literature on information flow and information asymmetry for explanations of what happened in the case of the Icelandic oil companies. (shrink)

Many governments and corporations have embraced information disclosure as an alternative to conventional environmental and public health regulation. Public policy research on transparency has examined the effects of particular disclosure policies, but there is limited research on how the construction of disclosure policies relates to social movements, or how transparency and ignorance are related. As a first step toward filling this theoretical gap, this study seeks to conceptualize disclosure conflicts, the social processes through which secrecy is challenged, defended, and mobilized (...) in public technoscientific controversies. In the case of shale oil and gas development in the United States, activists and policy makers have demanded information about the contents of fluids used in the extraction process and the routes of oil shipments by rail. Drilling and railroad companies have resisted both demands. Studies of such disputes reveal the dynamic and conflictual nature of information disclosure. In both cases, disclosure conflicts unfold dynamically over time, reflecting power disparities between industry groups and their challengers and requiring coalitions of activists to pursue multiple tactics. When a disclosure policy is established, it does not resolve social conflict but shifts the focus of struggle to the design of information systems, the quality of disclosed data, and the knowledge gaps that are now illuminated. (shrink)

This paper is motivated by the observation that Southern governments start to take responsibility for a more sustainable production of agricultural commodities as a response to earlier private initiatives by businesses and non-governmental organizations. Indonesia is one of the leading countries in this respect, with new public sustainability regulations on coffee, cocoa and palm oil. Based on the concept of governance capacity, the paper develops an evaluation tool to answer the question whether the new public regulation on sustainable palm oil (...) may become a viable alternative to private regulation. ISPO embraces a tremendous governance challenge as thousands of companies and millions of smallholder farmers are expected to participate. It is concluded that, although ISPO has initiated a process of change, it has not yet developed its full potential. The main reason regards ISPO’s rather loose problem definition, weak authority of the implementing organization, and the fact that the reliability of ISPO is still too low to convince of the global market. ISPO may therefore face difficulties in meeting its own targets and solving palm-oil related problems, such as deforestation, biodiversity loss, greenhouse gas emissions, and social conflicts between big plantations and local communities. The main governance challenge regards combining a more authoritative implementation mechanism with a convincing balance between sustainability objectives and economic interests of the sector. (shrink)

In the upstream oil and gas industry, mergers and acquisitions (M&A) are often used to enhance access to limited resources and improve competitiveness in the global market. However, a major challenge arises in post-acquisition organizational cultural integration, which can impede the success of this process. At PT "X," the acquisition of PT "Y" and PT "Z" highlighted a cultural gap between a company oriented towards familial values and companies with more professional and structured cultures. Although numerous studies have addressed (...) the importance of cultural integration in M&A, few have delved deeply into cases in Indonesia's oil and gas sector. This research employs a qualitative descriptive methodology with a Soft System Methodology (SSM) approach. The findings reveal that cultural differences, particularly in communication styles and work systems, led to tensions and decreased performance. The study further indicates that the lack of cultural assessment in the early stages of the acquisition exacerbated these issues. The research implications underscore the need for a more systematic and planned cultural integration strategy to ensure post-acquisition success. (shrink)

In response to stakeholder pressure, companies increasingly make ambitious forward-looking sustainability commitments. They then draw on corporate policies with varying degrees of alignment to disseminate and enforce corresponding behavioral rules among their suppliers and business partners. This goal-based turn in private sustainability governance has important implications for its likely environmental and social outcomes. Drawing on paradox theory, this article uses a case study of zero-deforestation commitments in the Indonesian palm oil sector to argue that goal-based private sustainability governance’s characteristics (...) set the stage for two types of paradoxes to emerge: performing paradoxes between environmental, social, and economic sustainability goals, and organizing paradoxes between cooperation and competition approaches. Companies’ responses to these paradoxes, in turn, can explain the lack of full goal attainment and differential rates of progress between actors. These results draw our attention to the complexities hidden behind governance through goal setting in the corporate space, and raise important questions about the viability of similar strategies such as science-based targets and net-zero goals. (shrink)

In 2009 the Roundtable on Sustainable Palm Oil established a conflict resolution mechanism to help rural communities address their grievances against palm oil companies that are RSPO members. This article presents the broadest ever comprehensive assessment of the use and effectiveness of the RSPO conflict resolution mechanism, providing both overviews and in-depth analysis. Our central question is: to what extent does the RSPO conflict resolution mechanism offer an accessible, fair and effective tool for communities in Indonesia to resolve conflicts (...) with companies? Our aim is not only to provide a ‘reality check’ of this mechanism but also to contribute to the wider debate on how communities can seek access to justice when engaged in intractable conflicts with palm oil companies. For data collection, we took three steps. First, we used our own database of 150 conflicts between communities and companies in Indonesia. We identified 64 conflicts that involved RSPO member companies, of which 17 prompted communities to convey their grievances to the RSPO’s conflict resolution mechanism. Second, we used the database of the RSPO, which handled 85 complaints against companies in Indonesia in the period 2009–2020. Third, we conducted fieldwork, in total, about 6 months of fieldwork and extensive interviews on three conflicts involving RSPO companies to identify mechanisms leading to both failed and successful instances of conflict resolution. For our assessment, we used three criteria to assess the conflict resolution mechanism of the RSPO: accessibility, procedural justice, and the outcomes of the process. We conclude that—on all counts—the conflict resolution mechanism is biased in favor of companies. The result of these biases is that the actual capacity of the RSPO’s mechanism to provide a meaningful remedy for rural communities’ grievances remains very limited. This unequal access to justice sustains conflicts between companies and communities over land. (shrink)

This paper applies an eight-step model of crisis management to the Gulf Oil disaster and discusses potential legal liabilities for BP. The eight steps are: ascertaining the facts, portraying the problem, allocating responsibility, responding to critics, adopting new policies, implementing new procedures, utilizing political/legal tactics, and costs in money and credibility. While crisis management responses often fall into either uniformly positive or uniformly negative patterns and outcomes, the BP case falls into a more complex pattern, where the company did some (...) things well and other things poorly, with BP making its worst mistakes in the pre-crisis stage. After examining BP’s response, the longer version of this paper examines the regulatory role and the application of the capture theory to the Minerals Management Service of the Department of Interior. That section and associated references are available upon request to the author. (shrink)

This article evaluates the potential of the current Corporate Social Responsibility (CSR) agenda for addressing issues related to societal governance. The investigation focuses on the experience of the oil and gas sector, which has been among the leading industry sectors in championing CSR. In particular, the article analyses the issue of revenue transparency, which has been the principal governance challenge addressed by multinational oil and gas companies. The article suggests that (1) tackling governance challenges is crucial to addressing the (...) impact of corporate activities; (2) current CSR and policy initiatives are entirely insufficient in addressing governance challenges and (3) corporate activities may be contributing to governance failures. (shrink)

This article analyses mechanisms of heritagisation that transformed oil from a natural to a cultural resource through the case study of the Branobel corporation, which operated in Azerbaijan from the late nineteenth century, and by reflecting on the role of the Branobel corporate narrative in heritagisation of oil and in justification of the world order based on fossil fuels. The narratives developed by the Branobel corporation introduced their business legacy as a part of global heritage. In the article I refer (...) to the ‘The Thirty Years of Activity of the Oil Production Association of the Brothers Nobel. 1879–1909’ published in 1909, that not only reports on Branobel’s industrial achievements, but promotes the history of oil, propagating its civilisational importance, while describing the company as an evolutionary part of this history. In their branding strategy, Branobel referred to the ancient religious cults and mythologies of Azerbaijan, for example in the case of the world’s first oil-tanker ‘Zoroaster’, designed by Ludvig Nobel. The images of Ateshgah, ‘The Fire Temple of Baku’, were used on the company’s emblems to connect symbolically the industrial oil mining with the ‘eternal fires’ worshipped at the Absheron Peninsula as ‘the lights of life’. (shrink)

Multi-stakeholder initiatives claim to make production of commodities more socially and environmentally sustainable by regulating their members and through systems of certification. These claims, however, are highly contested. In this article, I examine how actors use MSI regulation with regard to land conflicts with a focus on the Roundtable on Sustainable Palm Oil. MSIs are a resource that actors in land conflicts can use to generate evidence that gives them leverage in their negotiations. To do so, actors employ the interrelations (...) between two kinds of land conflict: localized land conflicts between local land users, and disputes between more distant actors over aggregated land-use related to the sustainability of palm oil production. To demonstrate this, I use the notion of assemblage in two case studies from Sumatra, Indonesia. Thinking in terms of assemblage allows the contradictory but interrelated practices that shape MSIs to be understood. In distinct locally embedded processes, actors enact MSIs in contexts of unequal power relations, from which MSI governance emerges. The way in which access to an MSI is distributed among contending actors shapes MSI enactments and thus its governance. The unequal distribution of access to the RSPO results in a governance that favors companies over communities. (shrink)

In this moment of rising nationalism worldwide, governments, civil society groups, transnational companies, and web users all complain of increasing regional fragmentation online. While prior work in this area has primarily focused on issues of government censorship and regulatory compliance, we use an inductive and qualitative approach to examine targeted blocking by corporate entities of entire regions motivated by concerns about fraud, abuse, and theft. Through participant-observation at relevant events and intensive interviews with experts, we document the quest by (...) professionals tasked with preserving online security to use new machine-learning based techniques to develop a “fairer” system to determine patterns of “good” and “bad” usage. However, we argue that without understanding the systematic social and political conditions that produce differential behaviors online, these systems may continue to embed unequal treatments, and troublingly may further disguise such discrimination behind more complex and less transparent automated assessment. In order to support this claim, we analyze how current forms of regional blocking incentivize users in blocked regions to behave in ways that are commonly flagged as problematic by dominant security and identification systems. To realize truly global, non-Eurocentric cybersecurity techniques would mean incorporating the ecosystems of service utilization developed by marginalized users rather than reasserting norms of an imagined user that casts aberrations as suspect. (shrink)

Very few studies have investigated the movement in stock returns that result due to changes in oil prices. In recent years due to cooling down of China, unveiled oil reserves of Iran, decreasing demand worldwide and discovery of shale gases the world has experienced a large fall in the oil prices. These changes are also affecting performance of manufacturing and other associated companies in countries all over the world. Pakistan has also been affected by these changes in many ways. (...) Especially, the returns on stock markets have been affected a lot by the variations in the oil prices. This paper using monthly data set from years 2014 to 2016 of the non-financial firms operated in Pakistan Stock Exchange, investigates the effect of variation in oil prices on returns on stock. Results from the panel data analysis indicate a negative relationship between the variables. Since, Pakistan is an oil importing, movement in the prices contribute towards affecting the production cost in a positive manner which in turn affects the execution of the enterprises as well as returns of the stocks negatively. (shrink)

Media representations of environmental conflicts between companies and communities play an important role in influencing ideas about the rightful exploitation of natural resources. This article examines local newspapers’ representations of fishers’ claims over resource access in a conflict between fishers and the oil industry in Tabasco, Mexico. Our analysis is based on articles from two newspapers dating from 2003–2004 and 2007–2012, and ethnographic data from 2011–2012. Drawing on Boltanski and Thévenot's theory of jus-tification, discussions on patrimonial collectivities, and studies (...) of media and social movements, we suggest that Tabascan newspapers reshape fishers’ claims over resource access by portraying fisheries and oil as patrimony. Being an ambivalent vocabulary for the defence of space and locality within a con-flict over natural-resource enclosure, the newspaper narratives of patrimony both invoke subaltern concerns and reconstrue state authority and local hierarchies. Furthermore, the newspaper narratives are interconnected with fisher leaders’ narratives, in particular, while misrepresenting different fisher groups’ arguments, and thereby contribute to political division among the fishers as a whole. (shrink)

As a sovereign wealth fund, the $1 trillion Norwegian Government Pension Fund-Global, which is managed by Norges Bank Investment Management on behalf of the welfare of Norway’s citizens, is supposed to be a flagship for socially responsible investments through its Council of Ethics. However, its investment in Delta Topco, the holding company of Formula 1 world championship that, through Formula One Group, brokered a deal with Russia to host a Formula 1 Grand Prix in 2014, raises the question of whether (...) the Oil Fund should enhance its due diligence processes. Although no evidence of corruption related to the race is introduced, the complex relation between financial logic and the world of sports still raises questions about the ethical solidity of the Oil Fund’s investment. Drawing upon reports of the relationship between political economy and sporting events, this paper therefore analyses, in light of the Oil Fund’s ethical guidelines, the complexities of its investment in Delta Topco. As a result, it is argued that a new set of examination methods by the Council of Ethics may be warranted. (shrink)

In the contemporary globalized economy, multinational companies have come to hold considerable power that may previously have rested with nation states. However, state structures remain relevant. With Brexit, the year 2016 featured an exemplary case in which the ongoing importance of nation states came to the fore. Preceding the British referendum to exit the European Union, discourses of national identity were deployed to promote a vote for the anti-globalization campaign. It is against this background that this research investigates how (...) the relationship between multinational corporations and nation states is constructed in news discourse. The underlying assumption is that news actively construct rather than merely reflects the nature of this relationship. Drawing on Social Actor Analysis and Transitivity as a theoretical framework, this study examines news coverage of the BP oil spill that occurred in the United States in 2010 but was caused by a multinational company headquartered in the United Kingdom. The main research question is ‘How does the media establish a link between multinational corporations and nation states?’. To address this central question, this study investigates how corporate responsibility is assigned, the role of the nation state is portrayed and victim status is allocated in the news. Findings show that the nature of the problem is constructed differently according to diverging national interests or priorities of the two nations represented by the media sources analyzed. The study indicates that the discourse around British nationality emphasized in the political struggle around Brexit was already mobilized extensively in the years leading up to the referendum. (shrink)

The dynamics brought about by the adoption of the International Financial Reporting Standards have a direct impact on the various Colombian economic sectors; highlighting the Oil and Natural Gas Extraction sector as one of the most important in terms of wealth generation and exports of the nation. For this reason, the present study was directed in order to analyze the indicators of Liquidity and Profitability in the Colombian oil sector between 2011 and 2021. For the development of the study, a (...) quantitative investigation is proposed with a documentary base where it is carried out an analysis of secondary sources from the Superintendence of Companies from which financial data of the Oil and Natural Gas Extraction sector in Colombia is taken, on which a descriptive processing is carried out and subsequently a correlational analysis between the liquidity and profitability indicators. The results show a level of correlation between the liquidity indicators, referring to the Current Ratio and Acid Test, and those of Profitability, Return on Total Assets, and Return on Equity. It is concluded that the correlation between these variables would be explained by the rates and sales volumes of said sector; which constantly carries out transactions of high sums of money accompanied by multiple policies and methods to ensure the transaction and thus not unbalance the receipt of income by the industry. (shrink)

The history of the modern oil industry begins along Oil Creek in August 1859 when Edwin Drake and Billy Smith found petroleum at the bottom of their well. Over the next decade and a half, Petrolia, the name given to this region in northwest Pennsylvania, produced more oil than anywhere else on earth. In the process, Petrolia became a massive industrial site and a vivid cultural image. Understanding this profound dual transformation is the object of Brian Black's sensitively drawn portrait (...) of the landscape of America's first oil boom.A landscape, according to Black, is a place where culture and nature meet, and in the 1860s a devastating crash occurred when the natural oil of Oil Creek met the commercial demand for lamp and machine oil. Oil Creek had been a quiet, lightly populated agricultural region whose sense of place was entirely self‐constructed by the local farmers. After Drake's discovery, the area became a place of unprecedented exploitation whose identity was hastily assembled by the thousands of outsiders that flooded the area looking for work, riches, or an exciting newspaper story. Petrolia soon became a mythic boom, a mania, a craze. Distant capitalists and recently arrived entrepreneurs painted fantastic pictures of endless and easy wealth. Oil became a prized commodity, and everything else—animals, plants, people, and even the creek itself—became expendable in a single‐minded market designed to pump as much oil as fast as possible. There seemed no legal, economic, or natural limitation to the exploitation—or to the boom mentality. Petrolia became the very embodiment of greed and speculation, instantaneous wealth and sudden failure. Its mores were as ephemeral as its transient population.All this is grist for Black's ethical mill, and he grinds it well, perhaps too relentlessly. There is no doubt that looking at the exploitation of oil from the obliteration of the wooded valleys, or the filth of boomtown streets, or the emptiness of ghost towns reveals a sacrificial landscape—an environment abused, wasted, ruined, and despoiled in pursuit of profit. Certainly Black is on firm ground when he ties what happened in Petrolia to what happened in Gilded Age America as a whole, but he may overstate the case when he argues that “industrial rationalization would never allow … humanitarianism to penetrate the utilitarian logic of Petrolia” .Was the logic of oil so ruthless and the motives of the Petrolians so shortsighted as to miss what was happening around them and what they were doing to themselves? They took photographs, after all. They criticized and complained endlessly about the mud, the floods, and the fires. Certain towns curbed land speculation, restricted development, and preserved a sense of community. And capitalists, by definition investors who try to reduce risk, worked to bring stability to petroleum production and prices. Black describes these valiant if sometimes vain efforts to restrain the oil rush. But taken together, they seem to suggest more of a struggle—communities versus companies, humanitarianism versus utilitarianism—than Black acknowledges.Many of those involved in the seeming chaos that was Petrolia wanted the oil industry to become a permanent, predictable branch of mining. This was especially true for the engineers, scientists, and other petroleum experts. To this end, Black provides a useful sketch of the technology of oil production along with a brief explanation of petroleum geology. He concludes, however, that none of these experts had much effect on the problems. “Science and technology were clearly tools of industry in Petrolia” .To an extent. In Black's account, the oil “industry” was a collective evil. Equal parts cultural and economic, it acts like a numberless, faceless mob, gripped by “oil on the brain” and motivated by an all‐pervasive ethic of progress and an insatiable drive to make money. It reduces to the sharp end of a rod used to bore through the earth for oil—environmentally insensitive and destructive. As an analytical device, however, “industry” is a blunt tool. Not all wells struck oil, not all companies manipulated knowledge and technique to their own purpose. Experts learned quite a bit and quite quickly about the habits of oil. The divining rod was not the most acceptable method of exploration . Again, there was more of a struggle—sci‐tech versus random wildcatting—than Black allows.The suggestion of situated struggles, however, does not detract from Black's larger theme. Petrolia was environmental hell. Black has rendered this nightmarish landscape into a powerful and at times passionate story about the physical changes to the land and its meaning . If there is a lesson to be found in Petrolia, it is that the modern oil industry is truly an American creation. (shrink)

This paper addresses the theoretical framework on corporate social reporting. Although that corporate social reporting has been analysed from different perspectives, legitmacy theory currently is the dominating perspective. Authors employing this framework suggest that social and environmental disclosures are responses to both public pressure and increased media attention resulting from major social incidents such as the Exxon Valdez oil spill and the chemical leak in Bhopal (India). More specifically, those authors argue that the increase in social disclosures represent a strategy (...) to alter the public''s perception about the legitimacy of the organisation. Therefore, we suggest using corporate communication as an overarching framework to study corporate social reporting in which corporate image and corporate identity are central. (shrink)

The use of hydraulic fracturing (‘fracking’) to extract oil or gas from shales is a subject of controversy. There are many scientific questions about the risks associated with the technique, and much research remains to be done. ReFINE (Researching Fracking In Europe) is a research consortium led by Newcastle University and Durham University in the UK, focusing on the environmental impacts of shale gas and oil exploitation using fracking methods. The project was established to answer questions raised by members of (...) the public across Europe on the risks of fracking. It aims to inform the debate surrounding fracking by undertaking scientific research, which will be peer-reviewed and openly accessible. This case study discusses the structure of ReFINE and the issues associated with using funding from oil and gas companies to support the research. (shrink)

The oil industry has played a significant role in the economy of modern Iran and Malaysia, especially as a source of transnational exchange and as a substantial factor in industrial and urban development. During the previous century, the arrival of oil companies in the Persian Gulf brought many changes to the physical built environment and accelerated the urbanization process in the port cities. Similarly, the development of the national oil industry had a considerable impact on post-independence Malaysia, affecting balance (...) sheets, the environment, and society. Oil significantly changed Malaysia’s position in the global economy and transformed a predominantly agricultural country into a significant producer of petroleum and natural gas. This paper implements the analytical, historical, and comparative perspectives. Specifically, it focuses on the legacy of oil cities in the Persian Gulf and the South China Sea as the birthplaces of the oil industry in two regions. In both countries, geopolitical importance and oil’s cultural, social, and historical narratives have the potential to represent national unity, political memory, and collective identity. In proposing this grounding, the paper seeks to approach the oil heritage as a particular form of industrial heritage. This research analyses the future of energy heritage, existing Covid-related challenges, and political tensions and examines the various impacts, transitions, and capacities associated with the current international relations, post-pandemic urban developments, and the post-oil future to pave the way for these developing areas of industrial heritage and oil heritage in Iran and Malaysia. (shrink)

Since the 1860s, petroleum companies, through their influence on local governments, port authorities, international actors and the general public gradually became more dominant in shaping the urban form of ports and cities. Under their development and pressure, the relationships between industrial and urban areas in port cities hosting oil facilities evolved in time. The borders limiting industrial and housing territories have continuously changed with industrial places moving progressively away from urban areas. Such a changing dynamic influenced the permeability of (...) these borders. Port cities are nodes and logistic points where various flows of commodities, wealth, and knowledge gathered before further re‐distribution. These flows affected port cities by changing their spatial organization and the availabiity of space between borders. The main question here is: How did industrial and urban borders evolve through time in port cities? Through a historical analysis, the article explores the settlements of oil facilities and the influence of oil companies over local, regional, and national governments in creating borders and how it influenced the porosity of port cities. This article, through the petroleum narrative, illustrates the impacts of past borders on the contemporary urban form through the evolution of the French port city of Dunkirk, in the North of France. As a historical study, the article analyzes the changing relationships between petroleum industrial sites and housing areas in the city of Dunkirk, using aerial pictures, archival sources, and regulations of different periods. The importance of this analysis lies in knowing that former oil sites previously located on the periphery of Dunkirk, that were forgotten by the authorities are now located within the current urban tissue. This process demonstrates the importance of historical developments to understand current challenges in the urban planning of industrial port cities. (shrink)

Individuals and institutions sometimes have morally stringent reasons to not do a given action. For example, an oil company might have morally stringent reasons to refrain from providing revenue to a genocidal regime, or an engineer might have morally stringent reasons to refrain from providing her expertise in the development of weapons of mass destruction. But in some cases, if the agent does not do the action, another actor will do it with much worse consequences. For example, the oil company (...) might know their assets will be bought by a company with worse environmental and labor practices. Or the engineer might know her position will be filled by a more ambitious and amoral engineer. I call this the moral problem of worse actors (MPWA). MPWA gives reason, at least some of the time, to consider otherwise morally impermissible actions permissible or even obligatory. On my account, doing the action in the circumstances of MPWA remains morally objectionable even if permissible or obligatory, and this brings additional moral responsibilities and obligations to the actor. Similarly, not doing the action in the circumstances of MPWA may also bring additional (but different) moral responsibilities and obligations. Acknowledging MPWA creates considerable challenges, as many bad actors may appeal to it to justify morally objectionable action. In this paper, I develop a set of strategies for individuals and institutions to handle MPWA. This includes appeals to integrity and the proper attribution of expressive responsibility, regulatory responsibility, and compensatory responsibility. I also address a set of related concerns, including worries about incentivizing would-be bad actors, concerns about epistemic uncertainty, and the problem of mala in se exceptions. (shrink)

The ability to evaluate scientific claims made in various media sources is a critical component of scientific literacy. This study compares how a group of 12th grade students and a group of specialists, including scientists and policy analysts with expertise in global warming, evaluated an editorial about global warming published by an oil company on the World Wide Web. Participants were asked to read the editorial and were asked a set of interview questions about it. Examples from the specialists’ interviews (...) indicate the kinds of responses that are possible with in-depth scientific knowledge. In comparison, although some examples from the students’interviews illustrate competent performance for a nonexpert, other student responses illustrate possible pitfalls. The approach of the present study affords a constructive route for formulating goals for scientific literacy. The approach permits identifying examples of students evaluating scientific claims in more or less competent ways—claims that are in the context of an important socioscientific issue and an actual media source. (shrink)

On May 26, 2017, Harvard economist Ricardo Hausmann published an Op Ed titled “Hunger Bonds”, urging investors to avoid Venezuelan sovereign bonds on the grounds that the country was prioritizing payments on the bonds over remedying a humanitarian crisis. Contemporaneously, news emerged regarding a suspicious looking bond issue by Venezuela’s oil company that was purchased largely by Goldman Sachs. That bond got tagged with the label “Hunger Bond”, and suffered a price hit. Using both quantitative data and interviews with investors, (...) we examine the causes of the Hunger Bond penalty, its impact on the prices of other outstanding Venezuelan bonds, and how long it was sustained. The primary determinants of the Hunger Bond penalty appear to have been a combination of negative press attention and crowd-sourced disapproval. For instance, we show that a large number of Google searches for “Hunger Bonds” are associated with a 200 basis point increase in the spread of the bond purchased by Goldman Sachs. (shrink)

The ad describes a programme, encouraged by Venezuelan President Hugo Chavez, to sell heating oil at discount prices to low-income communities in Boston, the South Bronx and elsewhere in the United States — one of the more ironic gestures ever in the North-South dialogue. The deal developed after a group of US senators sent a letter to nine major oil companies asking them to donate a portion of their recent record profits to help poor residents cover heating bills. The (...) only response came from CITGO. (shrink)

This article reacts against the undesirable ideological separation between dialectical and rhetorical approaches to argumentative discourse. It argues that a sound evaluation of argumentation requires an analysis that reveals all aspects of the discourse pertinent to critical testing. To explain the rationale of the various moves made in the discourse and the strategic patterns behind them, not only the interlocutors' dialectical goals must be taken into account, but also their rhetorical goals. After explaining how rhetorical insight can be instrumental in (...) deepening and justifying a dialectical analysis, an integrated analysis is made of the rhetorical strategies that are brought to bear in an advertorial published by the oil company Shell. (shrink)

The so-called resource curse raises moral issues. Who, if anyone, is morally responsible for it? This article argues that this question amounts to: who is blameworthy for the violations of people's property rights? The international oil companies are blameworthy for the violations of property rights only in the case of complicity, not in the normal purchase case. Yet the international community has to take action against massive violations of property rights. The article discusses different measures, and criticizes voluntary initiatives (...) such as the Extractive Industries Transparency Initiative for not making the states accountable to their people. In this line of thought, it argues for an extension of the mandate of the International Criminal Court: massive violations of property rights should be prosecuted at the international level. (shrink)

The purpose of this paper is to analyze the meaning and scope of social responsibility in a state-owned enterprise. Is corporate social responsibility (CSR) a meaningful concept for a state-owned enterprise, as opposed to a privately-owned corporation, given that it is created with social as well as economic aims? To try to answer to this question, the case of Sonatrach, an Algerian oil company, is examined. The lack of statistical data does not allow an assessment of CSR actions undertaken by (...) this company since 2004. The analysis identifies two main obstacles to the effectiveness of CSR in state-owned enterprises: (a) the system of internal governance ischaracterized by a lack of control; (b) the competitive and social environment is characterized by a partial application of the logic of the market, which does not allow the optimal allocation of means. (shrink)

The growing assumption thattransnational corporations (TNCs) will apply``best practice'''' and ``international standards''''in their operations in developing countries hasseldom been checked against close observationof corporate behavior. In this article, Ipresent a case study, based on field research,of one voluntary initiative to useinternational standards and best practice forenvironmental protection in the AmazonRainforest, by a US-based oil company,Occidental Petroleum (Oxy) in Ecuador. The moststriking finding is that the company refuses todisclose the precise standards that apply toits operations. This, and the refusal todisclose other (...) important environmentalinformation, make it impossible to verifyindependently Oxy''s claims of environmentalexcellence, or assess the effectiveness of theinitiative. At the same time, Oxy uses theinvocation of international standards to wrapitself in a veneer of corporate responsibility;reassure government officials and localresidents; cultivate confusion about standardsand practices that apply to the operations;deflect meaningful oversight and transparency;and arbitrarily legitimize norms that have beendefined by special interests. In short,international standards offer great promise forneeded environmental improvements; but can alsobe used to impede, rather than advance,corporate responsibility and the development ofeffective environmental law at the nationallevel. These findings suggest that for theapplication of international standards to bemeaningful, the international community needsto move beyond statements of principle anddevelop mechanisms that can be used toevaluate, verify, and monitor independentlyenvironmental claims by TNCs. (shrink)

L'histoire de la reconnaissance de la culture gazière au sein des grandes entreprises pétrolières éclaire la façon dont se construit une innovation en matière de culture d'entreprise et de communication. Jusqu'aux années 1950, le gaz apparaît encore comme marginal dans les préoccupations stratégiques et l'organisation des futures composantes de Total. Il faut attendre les années 1960 et 1970 pour que le gaz s'impose au coeur des préoccupations des grandes entreprises pétrolières. C'est de cette époque que datent les premières directions du (...) gaz. Du fait de la complexité et de la faible rentabilité à court terme des projets gaziers, les premiers membres des directions du gaz ont dû développer des stratégies de communication et de construction de réseaux d'alliances au sein de l'état-major de leur entreprise. Recrutés avec une expérience significative, ils ont construit et diffusé une culture innovante au fur et à mesure de leur carrière. Toutefois, ils ont été régulièrement confrontés à une question récurrente: à quoi rattacher cette nouvelle activité?The history of the recognition of culture gas in large oil companies sheds light on how to build an innovation in corporate culture and communication. Until the 1950s, the gas still appears to be marginal in the strategic concerns and the organization of future elements of Total. It was not until the 1960s and 1970s that the gas is required in the heart of the concerns of major oil companies. It is in this period that the first directions of gas. Due to the complexity and low profitability in the short term gas projects, the first members of the directions of gas had to develop communication strategies and building networks of alliances within the staff of their business . Recruited with significant experience, they built and distributed an innovative culture in As their careers. However, they were regularly confronted with a recurring question: what link this new activity? (shrink)

Asset freezes are sometimes viewed as the quintessential form of targeted sanctions—relatively effective in achieving their goals, while affecting only the individuals and companies that are “bad actors.” However, as part of the roundtable “Economic Sanctions and Their Consequences,” this essay argues that there are significant ethical problems raised by asset freezes and other forms of targeted financial sanctions. Sanctioners have long been criticized for targeting individuals and companies for arbitrary reasons or without adequate due process. However, there (...) is a second concern that is less well known. Asset freezes and other targeted financial sanctions may be imposed on government officials, government agencies, or private companies that hold a critical role in the target country's economy. A country's central bank, national oil company, or national shipping line, for example, may be severely compromised as a result of its inclusion on a financial blacklist. In addition to the explicit prohibitions imposed by targeted financial sanctions, there is a chilling effect as well. This can be seen when international banks and corporations withdraw from the target country altogether because the burden of compliance with these measures is so great, and the potential penalties so high. (shrink)